Question : Production of Ethanol

(a) the total quantum of production of ethanol in the country during each of the
last three years and the estimated production in the current year;
(b) whether the Government targets on production of ethanol blended fuel are
being met, if so, the details thereof and if not, the reasons therefor;
(c) whether the ethanol produced from molasses instead of sugarcane is more
useful and beneficial and if so, the details thereof;
(d) whether the production of ethanol directly from sugarcane is permitted in the
country and if so, the details thereof along with the name of major mills
which are producing ethanol directly from sugarcane; and
(e) the measures taken/being taken by the Government to increase the
production of ethanol and promote its usage in the country?

MINISTER OF PETROLEUM & NATURAL GAS
(SHRI DHARMENDRA PRADHAN)
(a) & (b): The ethanol procured for ethanol blended petrol by Oil Marketing
Companies (OMCs) in the last three years is as under:
Ethanol Supply
Year (ESY)*
Quantity (in crore
litre)
2016-17 66.5
2017-18 150.5
2018-19 188.6
*ESY – Ethanol Supply Year (1st Dec to 30th Nov)
Based on the offers received so far from ethanol manufacturers, the amount of
ethanol contracted by OMCs for supply during the current ESY is 192.87 crore
litre.
National Biofuel Policy -2018 envisages an indicative target of 20% blending of
ethanol in petrol to be achieved by 2030. The ethanol blending depends on the
availability of ethanol which further depends on availability of raw material for
ethanol production viz, sugarcane, damaged food-grains unfit for human
consumption, etc. and supply demand scenario in other ethanol consuming sectors
like potable alcohol, pharma, chemical, petrochemicals, etc
(c): Department of Food and Public Distribution (DFPD) has informed that
ethanol produced either from molasses or sugarcane is same and equally beneficial.
(d): The names of major mills which are producing ethanol directly from
sugarcane juice/sugar/sugar syrup are annexed.
(e): The important measures taken to increase the production of ethanol for
blending include:
(i) Encouraging production of ethanol from sugarcane juice and
sugar/sugar syrup.
(ii) Fixing remunerative ex-mill price of ethanol from various feed stocks.
(iii) Extending interest subvention to distilleries.
(iv) Amendment to Industries (Development & Regulation) Act, 1951, for
free movement of denatured ethanol for Ethanol Blended Petrol (EBP)
Programme.
(v) Reduction in Goods & Service Tax on ethanol meant for EBP
Programme from 18% to 5%.
(vi) Extension of EBP Programme to whole of India except island UTs of
Andaman Nicobar and Lakshadweep with effect from 01.04.2019.
(vii) Enhancing ethanol storage at Oil Marketing Companies locations,
(viii) Formulating an “Ethanol Procurement Policy on a long term basis
under Ethanol Blended Petrol (EBP) Programme”.
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